Puig, the cosmetics company that recently completed Spain’s biggest initial public offering in nearly a decade, is set to join Spain’s prestigious blue-chip equities index on July 22. The stock market’s advisory committee announced this exciting news on Tuesday, replacing Melia Hotels in the IBEX 35 index.
Since its market debut, Puig’s share price has experienced a more than 3% increase as investors placed their bets on the company’s potential inclusion in indexes like the IBEX. This move will fill a gap in the index, bringing a major luxury presence with brands such as Rabanne and Carolina Herrera perfumes under its umbrella.
Currently, Puig’s shares are trading at 25.35 euros, giving the company a valuation of over 14 billion euros ($15 billion). Over the years, Puig has strategically acquired brands like Byredo and Charlotte Tilbury to enhance its competitiveness against industry giants like L’Oreal and Estee Lauder.
In 2023, Puig’s in-house brands, especially Rabanne, generated net revenues exceeding 1 billion euros, with Jean Paul Gaultier demonstrating the strongest growth within the company’s portfolio. Analysts at JP Morgan have high hopes for Puig, forecasting a potential share price of 32 euros by December 2025, driven by the strong demand for premium perfumes, makeup, and skincare products.
Despite challenges posed by the global pandemic, Puig managed to achieve a 10.1% year-on-year growth in net sales during the first quarter of 2024, surpassing the overall premium beauty market performance. Leading financial institutions like Bank of America and JP Morgan anticipate further sales growth for Puig, outpacing its competitors in the market.
As Puig looks towards the future, the company plans to utilize the proceeds from its IPO to fuel investments, potentially exploring mergers and acquisitions. With the Puig family retaining a majority stake in the Barcelona-based company, there is a strong foundation for continued success and expansion in the luxury beauty market.
